It awarded Dotcom $90,000 damages, $60,000 for injury to feelings, and $30,000 for loss of a benefit - that being the information that he sought.
Outlined in a decision released today, the High Court has allowed the Attorney-General's appeal.
"We find that there was a proper and lawful purpose for the transfer of the requests and that, because of the insistence that all 52 requests were required to be responded to urgently, on the ground that the information sought was relevant to the eligibility proceedings, they were vexatious," it states.
It also said it would not have upheld the awards of damages for lost benefit and loss of dignity or injury to feelings.
At the four-day appeal hearing last month, the lawyer for the Attorney-General, Victoria Casey told the High Court at Wellington the transfer of the requests was "orthodox and sensible", and that the Tribunal had taken the wrong approach to deciding whether the requests were vexatious.
There was also "no evidential basis" for the $30,000 award for loss of a benefit, because Dotcom could have reapplied for the information under another part of the Privacy Act.
Casey also challenged the $60,000 award for injury to feelings, saying the requests were taken seriously and dealt with respectfully.
Dotcom has a number of matters going through the courts, including his battle against extradition.
The Court of Appeal upheld a decision in July that Dotcom could be extradited to the United States to face criminal copyright charges.
The Queenstown-based millionaire has vowed to appeal that decision in the Supreme Court.